A Night in a Korean Five-Star Hotel Now Crosses 300,000 Won

Five-star hotels in South Korea have crossed a price line for the first time. Yanolja Research reported on November 5 that the average nightly rate at the country’s five-star hotels was 328,527 won in the third quarter, the first quarter above 300,000 won since the series began in late 2022. Four-star hotels averaged 207,156 won, also a first above 200,000. Seoul Economic Daily reported the findings on November 6.

Foreign demand is part of the story. The survey covered 531 hotels and motels, and 96 percent of hotels accept foreign guests, with just over half of those raising rates compared with a year earlier. After visa-free entry for Chinese group tourists, 71.4 percent of five-star hotels reported higher Chinese bookings in the second quarter, against 8 percent of two-star hotels.

Rates rose most in Busan, up 13 percent year over year, then Seoul at 9.4 percent and Jeju at 9.1 percent, against a national average of 9 percent. Gyeonggi rose just 2.4 percent and Jeolla fell 1.2 percent. Foreign arrivals are up about 21 percent this year, according to the tourism ministry, and new five-star hotels in Seoul are not expected before 2028.

The report is a single industry survey rather than a broad price index, but it points in one direction for travelers. Peak-season stays in Seoul and Busan are likely to stay expensive, while four-star hotels and regions outside the main tourist corridors offer more breathing room.

Sources: Seoul Economic Daily